Disintermediation in Australia: What It Means for Your Money in 2025

Australians are no strangers to innovation, especially when it comes to money. In 2025, one of the biggest trends shaking up the financial sector is disintermediation—the process of cutting out the middleman. Whether you’re seeking a loan, investing in shares, or transferring money overseas, more Australians are bypassing banks and traditional brokers in favour of direct, tech-enabled solutions. But what exactly is disintermediation, and how is it reshaping the financial landscape?

What Is Disintermediation?

Disintermediation refers to the removal of intermediaries in a supply chain, enabling consumers and businesses to interact directly with service providers. In finance, this often means dealing directly with lenders, investors, or markets via digital platforms, rather than going through banks, brokers, or financial advisors.

Examples include:

• Peer-to-peer (P2P) lending: Borrowers and investors connect directly, skipping the bank’s cut.

• Direct share trading: Individuals buy shares online without a traditional broker.

• Robo-advisors: Automated investment platforms offer direct portfolio management, often at lower fees.

• Cryptocurrency exchanges: Users trade digital assets peer-to-peer, outside the banking system.

Why Is Disintermediation Accelerating in 2025?

Several factors are driving the rapid rise of disintermediation in Australia:

• Regulatory reforms: The Australian Government’s ongoing push for Open Banking and the Consumer Data Right (CDR) is making it easier for fintechs to access financial data and offer direct-to-consumer services.

• Fintech innovation: A new wave of Australian startups is leveraging AI, blockchain, and cloud technology to create seamless financial experiences without the legacy costs of big banks.

• Consumer demand for transparency and lower fees: Australians are increasingly questioning the value traditional intermediaries provide, especially as inflation and cost-of-living pressures bite in 2025.

• Globalisation and digital access: Australians can now access investment products, loans, and currencies from around the world—often at the tap of a smartphone.

For example, platforms like Plenti and SocietyOne have seen record growth in P2P lending, while the rise of self-directed investing platforms (such as Stake and Superhero) is empowering Aussies to take charge of their portfolios without old-school brokerage fees.

Benefits and Risks: What Should Australians Watch For?

Disintermediation offers clear benefits, but it’s not without risks. Here’s what to keep in mind:

• Lower costs: By removing layers of commission and fees, direct platforms often offer better value.

• Greater control: You call the shots, whether it’s selecting investments, setting loan terms, or choosing currencies.

• Faster processes: Digital onboarding, instant approvals, and real-time trading can save time.

But beware:

• Less advice and protection: Without a middleman, you may lack access to personalised advice or dispute resolution. Not all platforms are regulated by ASIC in the same way as banks or licensed brokers.

• Counterparty risk: In P2P lending or crypto trading, your risk is tied directly to the other party—not a well-capitalised bank.

• Tech and security risks: As platforms become more complex, so do risks of hacking, fraud, or service outages.

In 2025, the Australian Securities and Investments Commission (ASIC) continues to tighten oversight of digital lenders and investment platforms, but the regulatory landscape is still playing catch-up with technology. It’s essential to check platform credentials, understand your risk exposure, and keep cybersecurity hygiene front of mind.

The Future: What Does Disintermediation Mean for Everyday Australians?

Disintermediation isn’t just a buzzword—it’s changing how Australians manage, invest, and grow their wealth. Expect to see:

• Further adoption of Open Banking: As more fintechs plug into the CDR framework, expect even more competition and choice in everything from home loans to superannuation rollovers.

• Growth in direct lending and investing: The lines between traditional banks, fintechs, and even super funds will blur as direct access becomes the norm.

• Personalisation and automation: AI-driven platforms will increasingly tailor investment and loan offers to your unique profile, without human intervention.

For many, this means greater empowerment and transparency. But it also demands a more proactive approach to financial literacy and risk management. The future belongs to those who can navigate the new, direct financial ecosystem with confidence.